Inc’s financial statements are as follows: TURCO Inc. Balance sheet For the Period ended 2019 and 2020 ($000) ASSETS 2019 2020 Cash $ 200 $ 150 Accounts receivable 450 425 Inventory 550 625 CURRENT ASSETS $ 1,200 $ 1,200 Plant & equipment $2,200 $2,600 Less Accumulated Depreciation (1,000) (1,200) Net Plant & equipment $1,200 $1,400 Total Assets $2,400 $2,600 LIABILITIES & Owner’s Equity Accounts payable $ 200 $150 Notes Payable current (15%) 0 150 CURRENT LIABILITIES $ 200 $300 Bonds $ 600 $600 Owner’s Equity Common stock $900 $900 Retained earnings 700 800 Total Owner’s Equity $ 1,600 $1,700 Total liabilities & Equity $2,400 $2,600 TURCO Inc. Income Statements (000’s) 2019 2020 Sales $1,200 $1,450 COGS 700 850 Gross Profit $500 $600 Selling, general, ADM Expenses 30 40 Depreciation 220 200 Operating Income $ 250 $ 360 Interest expense 50 64 EBT $200 $ 296 Taxes (40 %) 80 118 Net income $120 $178 Using the financial statements above, Calculate TURCO Inc.’s free cash flows from operation for year ending in 2020? What are the uses of TURCO’s FCFs?
- Inc’s financial statements are as follows:
|
TURCO Inc. For the Period ended 2019 and 2020 ($000) |
|||
|
ASSETS |
|||
|
|
2019 |
2020 |
|
|
Cash |
$ 200 |
$ 150 |
|
|
Accounts receivable |
450 |
425 |
|
|
Inventory |
550 |
625 |
|
|
CURRENT ASSETS |
$ 1,200 |
$ 1,200 |
|
|
Plant & equipment |
$2,200 |
$2,600 |
|
|
Less Accumulated |
(1,000) |
(1,200) |
|
|
Net Plant & equipment |
$1,200 |
$1,400 |
|
|
Total Assets |
$2,400 |
$2,600 |
|
|
LIABILITIES & Owner’s Equity |
|||
|
Accounts payable |
$ 200 |
$150 |
|
|
Notes Payable current (15%) |
0 |
150 |
|
|
CURRENT LIABILITIES |
$ 200 |
$300 |
|
|
Bonds |
$ 600 |
$600 |
|
|
Owner’s Equity |
|
||
|
Common stock |
$900 |
$900 |
|
|
|
700 |
800 |
|
|
Total Owner’s Equity |
$ 1,600 |
$1,700 |
|
|
Total liabilities & Equity |
$2,400 |
$2,600 |
|
|
TURCO Inc. Income Statements (000’s) |
||
|
|
2019 |
2020 |
|
Sales |
$1,200 |
$1,450 |
|
COGS |
700 |
850 |
|
Gross Profit |
$500 |
$600 |
|
Selling, general, ADM Expenses |
30 |
40 |
|
Depreciation |
220 |
200 |
|
Operating Income |
$ 250 |
$ 360 |
|
Interest expense |
50 |
64 |
|
EBT |
$200 |
$ 296 |
|
Taxes (40 %) |
80 |
118 |
|
Net income |
$120 |
$178 |
Using the financial statements above, Calculate TURCO Inc.’s
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
